ACCC seeks NBN Co's capital forecasts

ACCC seeks NBN Co's capital forecasts

Summary: The Australian Competition and Consumer Commission has asked NBN Co to hand over confidential costs and pricing forecast information.

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The Australian Competition and Consumer Commission (ACCC) has asked NBN Co for confidential financial information that will be used to determine how the company expects to recover the costs for rolling out the National Broadband Network (NBN) over the next 30 years.

In a letter posted on the ACCC's website today (PDF), Richard Home, the commission's general manager of NBN engagement requested access to NBN Co's forecast capital expenditure, forecast values of construction in progress, forecast operating expenditure, and forecast value of asset disposal for every year that the 30-year special access undertaking (SAU) covers.

The SAU sets out the pricing and regulatory framework for the operation of the NBN for the next 30 years, and is designed to work hand-in-hand with the wholesale-broadband agreement (WBA), which sets out arrangements between NBN Co and access seekers selling broadband services on the network over a shorter period of time--at this point, one year.

The ACCC also wants forecast demand for each NBN product, the prices for each product over the 30 years, and total revenue expected to be earned from new products on the NBN that are not part of the existing range of products.

"This information will be used to model the implications of a range of cost, demand, pricing, and revenue scenarios for the long-term revenue constraint methodology in the SAU over the SAU term," Home said. "This will provide the ACCC with a more informed view on the expected length of the initial cost recovery period, and likely incentives generated by the SAU price controls."

The price controls in the SAU have come under criticism from Telstra, Optus, Macquarie Telecom, and AAPT, which have said that discretion over the capacity charge built into NBN Co's pricing model could lead to larger price rises on the NBN than the company has said due to increased data usage on the network.

The ACCC has asked NBN Co to submit the documents to the ACCC by February 12, and if this information has not been handed over, the ACCC has the power to formally request the information.

Topics: NBN, Government, Government AU, Australia

About

Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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8 comments
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  • Sure

    Nice NBNCo performance summary in the smh:

    "Figures released on Monday show only 72,400 premises had been passed by the end of December after 18 months of fibre rollout. In order to meet its own targets, NBN Co will need to pass 268,000 premises in the next five months.

    The company's target is to pass 341,000 new and existing premises with fibre-optic cable by June this year.

    Chief executive Mike Quigley vowed to improve the rollout in the second quarter of the year. He said the slow connection rate was reflective of progress in ''the early stages of the rollout'' and blamed delays on [insert latest excuse]"
    http://m.smh.com.au/it-pro/government-it/nbn-lags-on-rollout-program-20130128-2dgzz.html#ixzz2JJ3HguhZ

    Sure Mike! Take-up below forecast as well it appears.

    Great job as well in the recent Qld rainfalls guys;-)
    Richard Flude
    • Hey Fluddy, do you have page number yet? I assumed you needed extra time to verify the number in the PDF due to your apparent holiday you kept reminding us about. I thought your connection might be poor and could not download it from the NBNco website. If you could let me know what the page number is sometime this week that would be great. Thanks.
      Hubert Cumberdale
    • Plumbers and Brain Surgeons

      Richard me boy
      I suggest put your trust in more in depth analysis. I have actually saved that article and will take great pleasure in referring to it and quoting from it when the Jun 30 results come out.

      You may wish to find out why I say that, do your own research instead of being a gullible true believer in the MSM.

      Clues. FSAMS, Remediation, Bundled plans
      Abel Adamski
    • Mushrooms

      Poor old Richard thriving on being kept in the dark and fed on B.S by his media gurus

      http://delimiter.com.au/2013/02/01/telstra-remediation-work-delaying-nbn/#comment-572892
      Abel Adamski
  • Enter the brokne record...

    Wow look at Fluddy here again to electioneer... nice.

    Ooh BTW, I believe HC is still awaiting that page number you mentioned or were you again telling out and out porkies :/
    RS-ef540
    • True, I am still awaiting that page number RS... I do wonder if he'll ever cite it. I honestly thought it was a simple task and it would have arrived by now... we will see...
      Hubert Cumberdale
  • i am wondering

    why the ACCC is asking for these details at this time?
    Blank Look
    • Why indeed

      The ACCC is all about private sector competition, in a way a GBE is as much an anathema to them as to the Tea Party Conservatives. After all in their watch over the last 16 or so years Australia's comms have sunk to the level they have.
      I suspect they would rather the NBN went away and left them in their cosy little ideological fantasy land arbitrating between Telstra and the other players
      Abel Adamski